Accounting
Evaluating Financial Performance
Financial Forecasting
Managing Growth
Financial Instruments and Markets
100
Balance Sheet
What is the financial statement that shows assets, liabilities, and shareholders' equity?
100
Net Income divided by Shareholders' Equity
What is Return on Equity?
100
Prediction of what the company's financial statements will look like at the end of a forecast period.
What are Pro Forma statements?
100
Maximum rate at which a company sales can increase without depleting financial resources.
What is sustainable growth rate?
100
Fixed-income security where holder receives interst income and a specified amount at maturity.
What is a bond?
200
Assets = Liabilities + Shareholders' Equity
What is the Accounting Equation
200
Measures the fraction of each sales dollar that makes its way to profits.
What is the Profit Margin?
200
Major purpose of pro forma forecasts.
What is estimating a company's need for future external funding?
200
Phase in which a company loses money while developing products and establishing a foothold in the market.
What is startup?
200
Coupon rate
What is the interest rate on a bond?
300
Reflects revenue and expenses for a period of time.
What is the Income Statement?
300
Summarizes a company's use of debt relative to equity financing.
What is Financial Leverage?
300
Expected cash inflows and outflows over coming months.
What is a cash budget?
300
Dividends paid out as a percentage of net income.
What is the dividend payout ratio?
300
Form of senior credit in which a loan is collateralized by a specific asset.
What is secured credit?
400
Assets and Liabilities with maturities of less than one year.
What are Current Assets and Liabilities?
400
Widely used to analyze financial performance.
What is Ratio Analysis?
400
Forecasting by tying income statement and balance sheet figures to future sales.
What is percent-of-sales forecasting?
400
g* = PRAT
What is the sustainable growth equation?
400
Ownership security where holder votes for directors, may receive dividends, and is last to receive payment in liquidation.
What is common stock?
500
Identifies a company's principal sources and uses of cash.
What is the Cash Flow Statement?
500
Current Ratio
What is current assets divided by current liabilities?
500
Amount of financing needed to acheve planned objectives.
What is external funding required?
500
IPO
What is initial public offering?
500
New York Stock Exchange, NASDAQ
What are U.S. stock exchanges?
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